The euro continues its rally, supported by the weakness of the U.S. dollar, driven by uncertainty surrounding the consequences of Trump's policies, as well as pledges from EU and German officials to increase spending and reduce tax burdens.
Additionally, the EUR/USD pair is benefiting from improved sentiment in European stock markets at the start of the trading session. Typically, increased demand for risk assets supports investor interest in the euro.
Technical Outlook and Trading Idea:
- The price is positioned along the upper Bollinger Band and remains above the 5-day and 14-day SMAs.
- The RSI is near the overbought zone, while Stochastic is above the 50% level and rising.
A break above 1.0885 and price consolidation above this level could trigger further upward momentum toward 1.0980.
